On VoxEU, Paul Krugman reviews Mundell’s work in international finance and his impact on supply side economics.
Tag Archives: Paul Krugman
Notions of Liquidity Trap
On Fazit, Gerald Braunberger reviews the concept of “liquidity trap.”
- Keynes never used the term but Robertson did.
- Hicks introduced the common notion (represented, e.g., by a flat LM curve).
- Krugman talks about a different trap. So does Blanchard and he (incorrectly) attributes it to Keynes. So does Sinn.